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Elder Law and Estate Planning Blog - Lancaster, PA
Friday, August 9, 2013
In a digital age, where everything is online, there has been a debate about what should happen with a person’s “digital assets,” or all of their accounts, websites, Microsoft and music files, etc. Our online lives are almost as complicated and diverse as our offline lives, and they keep growing. So how do we plan for digital assets when it comes to estate planning?
First, we should talk about what a digital asset is. Digital assets and accounts include a wide variety of things, including:
• Email accounts
• Pictures (like Flickr and Instagram)
• Videos (YouTube, Vimeo)
• Documents (accounts such as Google docs and Scribd and files from Word, Excel, etc.)
• Websites, domain names and blogs
• Social Network Accounts (Facebook, Twitter, Linkedin)
• Music (iTunes, Amazon)
• Books (Kindles and e-books)
• Devices, like your laptop, smartphone, tablet, etc. and their associated accounts
• Frequent flier accounts (or something similar)
• Shopping accounts and online businesses (Ebay, Amazon, Etsy)
• Bill payment accounts (Bank, Paypal)
So what should you do with these accounts when it comes to estate planning? You should consider who can access and control these upon your death or incapacity and how they would get access when the time comes. Unfortunately, this can get tricky as the Terms of Service Agreements differ from company to company, and many have language buried in the depths of their unread words that allows the service provider to do whatever they want with your account should you abandon it due to death, disability or otherwise.
Although there is no perfect solution for what you can do with you digital assets, there are a few starting points I want to suggest. First, make a list of all your digital accounts and assets. This should include the website’s domain name, your username and password, security questions and answers, and other identifying information that will allow your successors to discover information. Update this list frequently and make sure your designated successors have access to it when they need it. This list can be anything from a basic spreadsheet to an online password storage service (there are a number out there, such as 1password, KeePass, and my-iWallet). But, be sure that if you make this list you protect the privacy and security of it to avoid providing a roadmap for identity theft! Whichever way you make this list, don’t include password information about it in your will because that becomes a public document. Instead, write down where the list is, how to access it, and the password and store that information in a safe deposit box or with your attorney.
You can also ask to include a provision in you will and powers of attorney that cover the management and succession for accounts. Will this work? Maybe, but maybe not depending on the terms of service, which, like I said, varies from service provider to service provider. Still, it can’t hurt to try and will let your estate planning attorney and executor know what you want done with your digital assets, even if later they are prevented from being carried out.
Wednesday, August 7, 2013
Continuing-care retirement communities (CCRCs) are communities that are part independent living, part assisted living and part skilled nursing home, offering a tiered approach to the aging process and accommodating the changing needs of their residents. And due to the recession, many CCRCs are becoming more efficient, making now a good time to consider a move to a community. Eager to draw in new residents, many are offering different services and bargains that can be quite nice if you are ready to move.
Before you get up and go, make sure you find a community that appeals to you. It’s important to check many different components, including:
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The Caregiving Component. Check if care is on-campus or off-campus. Also, if your family has a history of a medical problem, like Alzheimer’s, make sure your CCRC has good care for that.
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The Costs. CCRCs normally have an entrance fee depending on the apartment size and a monthly fee to cover needs. They are also dependent on other factors, including health, the number of residents living in the facility and the type of service contract (fee-for-service or all included). Remember that many current expenses, like groceries and home maintenance, will be covered at the CCRC. A general suggestion is to have your monthly income be one and a half times the monthly fee.
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The CCRCs Finances. If the occupancy rate is below average (90%), the number could reflect poor management. Also, look at the sponsoring companies and the CCRC’s track record. Have a lawyer or geriatric care manager check the community’s status, too. Make sure your CCRC can keep any promises they make.
Monday, August 5, 2013
Although you can’t turn back time, you can help an aging loved one by providing them with a safe place to call home. If your parent is moving in with you and your family, there are several quick fixes to senior-proof your home.
First, take a look at your floor plan. If all your bedrooms are upstairs, you might want to consider turning a living area into a room, especially because stairs grow difficult with age. Try to have everything they need accessible on one floor - a bed, full bathroom, and kitchen. If it’s not possible to keep everything on the same floor, have railings installed on both sides of the staircases for support.
Check the hallways and floors second. You want to remove all possible tripping hazards, like throw rugs or toys, and add nightlights to dark hallways. Also install handrails anywhere the extra support might be needed, especially in the bathrooms. Handlebars in the showers and by the toilets are essential for senior safety and to prevent falls, as are traction strips in the shower.
Finally, when talking with elderly clients, something they often mention are chairs. Big, puffy chairs and couches make it difficult for seniors to stand and sit. They need cushions that offer support and stable handlebars to help with standing and sitting.
Before your parents move in, do one last run through of the house, and try seeing everything through their eyes to see what can be further improved. And if you want more information, try contacting a local nursing home, home caregivers, or even an office of aging.
Friday, August 2, 2013
School will be starting up again soon, and while our kids may not be excited for it, it is coming. When school starts again, every family should have a clear plan in case an emergency occurs during school hours. With just a few simple steps, you can make sure that your child is taken care of if tragedy strikes.
First, you should name temporary guardians, people you give permission to care for your children should you and/or your spouse be unable to do so. This individual should be someone who lives nearby and can comfort and aid your children in an emergency. You can name a temporary guardian by completing a temporary guardianship agreement or authorization.
Make sure the temporary guardians are named on school emergency cards. Some schools have these, authorizing certain people to pick up your child from school. This way a guardian can take over immediately in the event of a true emergency. Otherwise, your children may wind up in the custody of social services until a legal guardian or parent can be located.
Finally, make sure that your babysitter knows the plan if you don’t return home. We don’t like thinking about it, but make sure you leave the information of who to call or what to do in case you are unexpectedly absent. Without this information, babysitters will typically panic and call the police.
In time of tragedy, you don’t want your little ones to end up in social services, asking questions without answers. Instead, leave them in the arms of a trusted friend by taking these simple steps.
Wednesday, July 31, 2013
This past Sunday was the Alzheimer's Association International Conference, and at this conference two new drugs were presented. These drugs have shown a bit of promise in early tests and will likely be tested in the next round of clinical trials. Researchers are hopeful that these drugs will advance farther than others have, making to the marketplace, but aren't holding their breaths for it. To read more about these two drugs, check out this article in Everyday Health.
Monday, July 29, 2013
Every single parent needs a will. It is the single most important thing you can do to make sure your child is cared for by the people you want to care for them, should anything happen to you. In your will, you not only designate who gets your inheritance, but you also name a person to care for your children if you die before they become legal adults. And you can choose a person to be guardian of the property or trustee to manage your money for your children until they reach adulthood. One person can act in these roles, or you can choose separate people.
Without a will, there’s no guarantee that when you die your money will go where you want or that your children will be cared for by the person you believe will do the best job. This may not seem like a problem as the Pennsylvania laws want to assure that a surviving spouse and children are taken care of, but it still doesn’t distribute the money exactly how you might want. If you die, leaving your spouse and children, your spouse will get the first $30,000 plus half of the remaining estate. Your children split the remainder of the estate, leaving your spouse to jump through legal hoops if he/she wanted access to that money to raise your children. Additionally, if you and your spouse both pass without a will, the state decides who will look after your children. This person may be the same person you would have named, but it also could be someone you aren’t comfortable leaving your children with. You should create a will if only to name a guardian.
Creating a will also gives you options on how to leave property to children, especially children who are still minors. Some of the most common ways include property guardianship, a custodial account (known as Uniform Transfer to Minors Act, or UTMA), or a trust fund. Talking with an estate planning attorney, who knows all the available options and how your state treats each of them, will provide you with the best way to leave your property to your children.
Friday, July 26, 2013
There are many reasons to add another person’s name to the titles of your property, but typically, except between spouses, joint ownership is usually a bad idea.
Once you name someone as a joint owner, both owners have full rights to make withdrawals from the account. In most cases, naming your child as a joint owner seems as if it would make your life simpler, however if you find that money is mysteriously being withdrawn from the account, technically your child has that right, even if it wasn’t your intention by naming him or her as joint owner.
Additionally, if a person is added to the title of property, it can only be undone with his or her consent. So, if after adding your child’s name to the title of your house, you can’t take it off unless your child agrees to remove his or her name.
Moreso, any property jointly titled is subject to claim’s by each joint owner’s creditors. If the person you name as joint owner is in debt, your property could be up for grabs simply because their name is on the title.
And finally, having property that is jointly owned will make it so that it does not pass through the estate at the time of death. A key example of this occurred recently, when a client died and left all of her property to her three kids. Most of her estate lied in a bank account that was titled jointly with her one daughter. She initially put her daughter on the joint account out of convenience, especially because this daughter lived nearby. However, at the client’s death, instead of the account being included in her estate and divided among her children equally, the daughter was given the entire account as she was now the owner. Her siblings, on the other hand, got very little inheritance from the estate.
Luckily, there are other options to naming a joint owner on your accounts. Talk to your local attorney, or give us a call at (717) 560-4966, to find out your options.
Wednesday, July 24, 2013
As an adult, you know that saving money is important. Whether you are saving to pay for college for your children, saving for the next vacation, or simply saving in case you need the money in the future, you have learned the value of a dollar.
However, a staff members recent trip to Spain made me think about children and how they view money. She came back from Spain saying that after a month, the euro still seemed a bit like monopoly money since it has a different value than the US dollar. Although she understood that she was spending her money, she didn’t see the value in dollars and never really knew how much things were costing her. Our children are like that. They don’t know how much that green dollar bill with a number 1 in the corner is really worth. And with today’s age of apps and computers, buying things online is making it harder for them to realize the money’s value and that they are spending it.
So how can we teach our children these valuable lessons? Well first, I’d recommend not letting them make in-app purchases or other digital purchases until they gain some mental and financial maturity. Additionally, encourage your children to save their money for some easily attainable items. If you are trying to explain saving to them in terms of saving for college, kids won’t grasp the idea (I wasn’t thinking about college at 6 years old). But if they’re saving for a toy, they can watch the money add up until they reach their goal. And then, when they’ve reached their goal, let them spend the money on their toy. They will see that they’ve reached their goal, but they will also see an empty piggy bank, giving them incentive to start saving again.
Monday, July 22, 2013
This past week, AOL posted an interesting article on senior driving. Ten years ago, an 86 year old man drove through a farmer's market in California, killing 10 people and injuring 63 others in less than a minute. Although thankfully these accidents are rare, AOL reported that the United States still hasn't found a way to handle the problem of aging drivers. And this problem could get much worse as the baby boomers get older and keep driving.
In the U.S., the issue is dealt with on a state level or on a grassroots basis, and while there has been a big increase in the number of people fixing the problem, there is still a lot of work to be done. One of the biggest issues is deciding when someone should no longer drive. People age differently, for example one 80 year old might be vibrant and active while another suffers from dementia, so banning drivers after a certain age would simply be unfair. However there still needs to be a solution.
Until the U.S., or each individual state, develops a solution, we must continue to rely on self-regulating. This includes children monitoring their parents driving. Although this can be a tough topic to start a conversation about, having one may prevent an accident. If you are looking for a way to start this conversation, visit an older blog post of ours, Hanging up the Keys, for tips and advice on how to have this conversation. Be gentle with your delivery, and be prepared to offer alternatives. Start by planting the seed and seeing if they make small decisions that show they are thinking about not driving. Your parents may be open to this change, but remember that driving is a symbol of independence for them. Be gentle to start, but if that doesn't work you may have to lay down the law and let them know it is a matter of life or death.
To read the complete article on AOL, click here.
Friday, July 19, 2013
Every Will names one, or sometimes two, people as Executor. This person is then responsible for taking charge of the deceased person’s assets, paying debts, and distributing the property to the beneficiaries to close down the decedent’s estate. While the executor is oftentimes a beneficiary of the Will, he or she must treat all beneficiaries fairly and in accordance with the provisions of the Will.
So what exactly do you have to do if you’ve been named executor? First, you must obtain the original, signed Will and other important documents, such as certified copies of the Death Certificate. Then the executor must notify everyone who has an interest in the estate or has been named as a beneficiary in the Will. This includes anyone who has been disinherited from the will.
The executor must take steps to secure all assets and get their value at the date of death. Assets of an estate include all real and personal property owned by the decedent. Commonly overlooked assets include stocks, bonds, pension funds, safety deposit boxes, and work-related life insurance or survivor benefits. The executor must also compile a list of the decedent’s debts, including credit cards, loan payments, and mortgages. All of the decedent’s creditors must be notified and given the opportunity to make a claim against the estate.
Once values are obtained, the executor must file all tax returns, including federal and state income tax returns. Additional tasks can include notifying carriers for homeowner’s and auto insurance policies and initiating claims on life insurance.
Fortunately, as executor you are entitled to find an estate administration attorney to help guide you through this process. The attorney knows everything that needs to be accounted for, and how some of the more complicated processes of closing an estate, like probate, works. This attorney will then be paid for by the estate and not out of your own pocket. Also, serving as executor entitles you to compensation for your services.
If you have been named as the executor of a Will and need help administering the estate, call our office at (717) 560-4966. We would be happy to assist you any way we can.
Wednesday, July 17, 2013
Today's topic will take a break from estate planning and instead focus on new Alzheimer's research.
According to a recent study, damage from concussions and the deterioration due to Alzheimer’s look similar on brain scans and produce similar symptoms. Researchers from the University of Pittsburgh looked at 64 patients who experienced concussions and compared their MRI scans after the injury to the scans of 15 healthy patients over the same time period. The images picked up damage to the white matter, which facilitates connections between different regions of the brain and is responsible for functions such as memory, planning and reasoning. The damage revealed in concussion patients was similar to that of Alzheimer’s patients. The study also showed that the sleep disturbances Alzheimer’s patients suffer from also are present in concussion patients, making cognitive issues worse in both groups.
The connection between these two could lead to a better understanding of concussions, but also of Alzheimer’s. Only time will tell how future researchers will use this information.
To read the full article, published by Time on June 19, 2013, click here.
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